It just takes one inch of flood-water to cause more than $25,000 in damage to a home, according to the Federal Emergency Management Agency (FEMA). When flooding occurs, homeowners will want to ensure that they are protected. Flood insurance is an effective way to safeguard a home against unknown perils like storms and burst pipes. Policies are available for both homeowners and renters who wish to protect their investment and gain peace of mind.
What Is Flood Insurance?
Floods are the most common natural disaster in the U.S., according to the Department of Homeland Security. All 50 states in the U.S. experience floods and damage from a flood is not generally covered under standard homeowners insurance policies. What makes this insurance different is that it is federally backed by the National Flood Insurance Program (NFIP). The NFIP allows homeowners, renters, and businesses in participating communities to purchase insurance to protect against flood-related losses. The NFIP is regulated by FEMA, which partners with various insurance companies to sell and manage policies.
Standard insurance policies cover direct physical damage to a home’s structure, including the foundation, electrical and plumbing systems, cooling and heating systems, and detached garages. It may also cover other attached items, such as built-in cabinets and paneling. In addition to covering the structure, flood insurance also covers belongings damaged by flooding. This may include items like electronics, clothing, furniture, and appliances. There are certain limits to what this type of insurance will cover which is generally up to $250,000 for a residential home and up to $100,000 for any contents inside the home damaged during a flood.
Top Benefits Of Acquiring Flood Insurance
No home is completely safe from flooding. That is why many homeowners rely on this insurance type to protect their property and belongings. Catastrophes like heavy rain, snowmelt, hurricanes, and flash floods can all cause extensive damage to a structure and its contents. This insurance type is designed to insure property up to the replacement cost or actual cash value of the damages. With this insurance, homeowners can acquire a wide range of benefits, such as coverage for structural damage, damage to HVAC equipment, and flood debris cleanup expenses.
Some of the top benefits of this insurance for homeowners include the following:
Protect Your Property
Most standard homeowners insurance policies do not cover flooding, which means homeowners must look elsewhere for the coverage they need to protect their property and belongings. Flood insurance is a specialized policy that allows homeowners to receive compensation for any damage done to the structure of the home, utility systems, or belongings like furniture and electronics. In addition, a flood insurance policy may reimburse a homeowner for certain flood-related tasks completed, such as sandbagging the home, moving furniture, or removing debris. While this insurance type is not required in every state, most mortgage lenders require home buyers to purchase this insurance type before they can get a mortgage for a property in a high-risk zone.
Keep Your Loved Ones Safe
When a tragedy occurs that impacts a community, the safety of loved ones is of the utmost importance. Today, there are a variety of options for assistance when damaging natural disasters occur, such as FEMA aids. However, the amount of damage caused by flooding can be substantial. According to the Congressional Budget Office, the number of economic losses from damages caused by hurricane winds and storm-related flooding each year exceeds $54 billion, of which $34 billion were in losses to households. Having an insurance policy can help protect families from financial disaster.
Increase The Value Of Your Home
Living in a high-risk flood zone often requires homeowners to acquire this crucial insurance as a necessary precaution. Even if a homeowner lives outside of a high-risk flood zone, having flood insurance can be highly beneficial and can even make a homeowner appear as a more responsible homeowner. Investing in insurance shows that a property owner cares not just about their own home but the entire community. Acquiring a flood insurance policy encourages others in the neighborhood to do the same, which expands protection across regions. Homeowners can protect both their families and the value of their homes with this type of insurance.
Speak To Expert Insurance Agents
While flood insurance covers a wide range of structures and personal possessions, there are certain things that it does not cover. For example, most standard flood insurance policies do not cover buildings that are built entirely over water or primarily underground. In addition, flood insurance does not cover landscaping, animals, swimming pools, crops, and most motor vehicles. Each policy is different so it is important to speak with a qualified insurance agent about other exclusions that may apply. For more information about the benefits of insurance for homeowners or to acquire a policy, contact the insurance professionals at John M. Glover.